Colorado Springs Vintage Homes Blog
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21 reasons short sales fail
Part X of Colorado Springs Short Sales Series
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
According to an article in Reuters in April 2008, 1/3 of all short-sale fail. The study was conducted of more than 3,000 real estate agents by Campbell Communications.
Since I do short sales for clients in Colorado Springs and the surrounding areas, I thought I’d make up my own list of why they fail. My logic is that if I can avoid or minimize these issues as much as possible, I should be able to lessen the failure rate. Here’s my list; although I don’t have them ranked in any particular order. Some of these things I can control and some of them I can’t; regardless it was an interesting exercise to put the list together.
A. Training and education (One short sale class is not enough to prepare a realtor to represent a client in short sale.)
(1) Seller’s agents don’t always understand what they are doing
(2) Buyer’s agents don’t always understand what they are doing
B. A buyer is never found for the property
(3) Price is too high
(4) There is too much inventory on the market for buyers to choose from
(5) Undesirable location
(6) Property needs major repairs
(7) Not enough time to market the property before the property goes to foreclosure
C. Offer is too low Read the rest of this entry »
How do you price a Colorado Springs short sale?
The Art of Pricing a Short Sale
Part IX of Colorado Springs Short Sales Series
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
I’ve had some agents tell me that it seems like everyone will be a short sale expert by the time all this is said
and done. Ladies and Gentlemen, I have to say that there are very FEW experts in short sales in this market; as I think every situation is different and every lender is different. No two situations are the same. Here are some of my favorite comments about short sales from other agents …………..
The seller needs to fix the roof, it won’t pass inspection. If the seller had the money to fix the roof, he wouldn’t be in a short-sale. Did you see the verbiage sold “as-is” in the MLS? Did you see that it was listed as cash or conventional financing only?
Why can’t the seller keep the utilities on? Again, if the seller had the money to keep the utilities on, he probably wouldn’t be in a short-sale.
And my favorite …………. I’m going to advise my seller to price the house really cheap, that way I’ll get several offers to send to the lender. I know the lender will accept any offer they get.
OK, so you are going to ask me: “And what does it matter Read the rest of this entry »
Are there tax ramifications to a Colorado Springs short sale?
Taxes due on Short Sales?
As part of listing short sale properties, a large portion of what I do is help educate sellers who are in financial difficulty. I’m often asked about the tax implications of the debt forgiveness on a short sale or foreclosure. I hope this article will answer some of these questions.
I pride myself on thoroughly researching any article I write, and this article is no exception. Having said that, I’m not an accountant or CPA, and I urge you to seek professional tax advice on the tax ramifications of a Short-Sale and Foreclosure.
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
- How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
What is the Mortgage Forgiveness Act?
The Mortgage Forgiveness Debt Relief Act of 2007 was passed for taxpayers who lose their homes in foreclosure. (According to the information on the IRS Web Site: “Homeowners whose mortgage debt was partly or entirely forgiven may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2008 federal income tax return.”)
The law applies to debt forgiven in 2007, 2008 or 2009 and it’s important to note that debt forgiven on second homes and rental property does not qualify. Read the rest of this entry »
How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
Must Read Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
How long does it take to do a Short Sale in Colorado?
Get a Free Market Analysis on your Home, Email KTorline@msn.com or call 719-287-1049
As I continue to do more and more short sales; I think one of the most valuable services I can provide it to help educate and counsel potential home sellers who are interested in doing a short sale. Short sales aren’t a perfect solution, but they are an option.
There are many steps involved with the Short Sale process……
(1) The first step is an initial consultation with the homeowner to explain the “in and outs” of a short-sale, previewing the home, driving the neighborhood; completing a comprehensive market analysis on the home.
(2) If the homeowner decides to to a short sale …………. Read the rest of this entry »
